In the complex world of financial planning, couples often find themselves juggling around to ensure a stable and prosperous future. One of the most important moving parts in this struggle is insurance premiums, which are essential to protecting yourself against life's uncertainties.
When it comes to financial planning, knowing how to split insurance premiums strategically can strengthen your financial safety net and also unlock valuable health insurance tax benefits.
This comprehensive article, which offers cutting-edge insights to maximise health coverage and financial planning, is designed for professionals who want to understand the complexities of health insurance tax benefits under Section 80D of the Income Tax Act in India.
Do couples have the option to split the insurance premiums for health insurance tax benefits?
Family health insurance policies are designed to cover the entire family unit, including spouses and dependent children. It simplifies management because a single plan handles the health needs of the whole family.
Section 80D of the Income Tax Act of India provides health insurance tax benefits for health insurance premiums. Premiums paid for the taxpayers, spouses, children, and parents' health insurance are eligible for deductions.
The act allows spouses to split the premium on family insurance plans, which helps both earning individuals reduce their taxable incomes. Furthermore, they do not have to pay the entire premium all by themselves.
If they decide to buy a separate health insurance plan, they can claim additional tax deductions under Section 80d up to the maximum permissible limit.
However, the pair should be bound to have separate tax certificates issued by the insurer. Some insurers generally issue two tax certificates for premiums paid in portions for a single policy, subject to certain terms and conditions; however, other insurers disagree.
Apart from that, the insurer decides the distribution of premiums themselves while issuing the policy. Also, it is preferable for the couple to have different bank accounts to pay the premium amount.
Deductions Available Under Section 80d for Each Partner Based on Their Age
Each partner can claim a deduction for the health insurance premiums they pay. This applies to premiums paid for policies that cover themselves, their spouses, and dependent children.
The maximum deduction limits are determined by the age of the insured individuals. If both partners are under 60 years of age, each can claim a deduction of up to Rs. 25,000 for the premiums paid. If either partner or both are senior citizens (60 years of age or older), the deduction is Rs. 25,000.
The total deduction for the couple is the amount of the individual deductions claimed by each partner. For example, if both couples are under 60 years old and contribute Rs. 20,000 each towards health insurance premiums, the total deduction for the pair would be Rs. 40,000 (Rs. 20,000 + Rs. 20,000).
Section 80d deduction in the case of parents (additional):
An extra deduction is available if one partner pays for their parent's health insurance premiums, which covers the Section 80D medical insurance deductions.
If you are a senior citizen who has purchased a plan for his family members, including his parents, you can save up to Rs 1 lakh and earn a deduction of Rs 5,000 for the expenses associated with health check-ups for the entire family. In short, the health insurance tax benefits in the form of a Section 80d deduction can range from Rs 30000 to Rs 1,05,000.
Wellness-benefits for the family's long-term security
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Why Future Generali's products stand out:
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- Unlock Health Insurance Tax Benefits Under Section 80d
- Individual And Family Tax Deductions
- Hassle-Free Documentation
In conclusion, premium splitting is more than just a financial strategy; it is a commitment to a healthier and wealthier future together. It exemplifies the adage that when couples work in tandem, they not only share the journey but also share the rewards.
